Kilpatrick on Trial: Day 11 of testimony

8:53AM Video turns on.Kwame and Bernard Kilpatrick are the first defendants in the courtroom this morning, followed closely by a conservatively attired Bobby Ferguson.U.S. Attorney Michael Bullotta and Kwame defense lawyer Jim Thomas are talking about a matter they want to take up with Judge Nancy Edmunds.

9:03AM Judge Edmunds enters the courtroom and all lawyers go straight to sidebar at the judge's bench. Audio switched off so that media can't hear.While they're in sidebar, here's the fashion flash: Kwame is in a beige suit and dark tie while Bobby is in a dark sports coat, light striped tie and khakis. The guy is unbelievable, wearing leather to court one day and Brooks Brothers looking jackets the next. Bernard Kilpatrick is in a grey pinstriped suit, yellow shirt and pocket hankie. Victor Mercado is a typical dark suit.9:08AM Sidebar disbands.

9:09AM Jurors sit.Jennifer Blackwell for government. Government calls Radmilla Kest. Works at a Center for Yoga. Studio owned with husband and is in 4 locations including West Bloomfield, Ann Arbor and Birmingham.In 2002 and 2003, center received request for yoga for the mayor. Sent someone to the mayor's office- an independent contractor. He provided a few dozen classes. The yoga center charged $225 per lesson.Witness looks at documents.KPS 11- invoices for lessons. Check for $1,500 to the Center for Yoga dated December 20th 2002. Signed by Christine Beatty and Kwame Kilpatrick. On Kilpatrick Civic Fund check. For services provided October through December.Another check. December through February. For $1,500. Date 12/26/02A third check for $900. September 2003.KCF 12- Another check from Kwame Kilpatrick for $1,125 dated April 2003.

9:16AM Jim Thomas cross examines.You never met him? No.You did not instruct him? No.Who provided services? Brian Grenadier.Please look at KCF 11- did you know if Kwame Kilpatrick was a signatory on those checks? I don't know.Thomas said check was negotiated and you received payment? We received payment.Group rate? Between $100 and $150.Witness says it was supposed to be for mayor and peers.Do you do group lessons for non-profits? Yes.What is the benefit for yoga? What does it do for corporation? Team building and morale of the company.How does it help in Team Building? Witness says it's very physical and emotional and people come to unwind.What does yoga do for the person? Creates relaxation, focus, "makes them kinder people."Thomas says "we have some lawyers who should do that actually. I should sign up."Thomas says no further questions.Witness steps downs.9:21AM Blackwell for government. Witness sworn in. Probably yoga boy. Kwame is laughing.Brian Granader- a yoga teacher. Owns his own studio- Red Lotus Yoga since 2003. Yoga instructor since 2002. At one time instructor for Center for Yoga in 2001 and 2003.Provided lessons for Center for Yoga and for Kwame Kilpatrick. First lesson was in late 2002. Took place at Cobo Hall. 5 to 8 people present including mayor. Understood people to be working with the mayor. Pretty sure they were bodyguards. Lessons were early at about 7 or 7:30AM.Did lessons twice a week for a couple of months. First bunch of lessons at Cobo Hall, but some at Manoogian Mansion. Mayor was always present. Assumed the particpants were security from mayor's staff.Witness paid through the Center for Yoga.Thinks he taught mayor for 2 to 3 months.When he was at his own center, got called 2 or 3 times to provide lessons for mayor. Paid by check by the mayor. Never heard of the Kilpatrick Civic Fund. No youths were present at classes.9:26AM Thomas cross examines.Worked with him early? Yes.Was he devoted to the lessons? Yeah.Any women come to the lessons? Yes.Who were they? Assumed they were sercurity detail.When you were you first contacted by the government for this matter? They took a statement it should be dated.Thomas says I'm looking at it here. Can I show it to you? Yes.Judge asks Thomas to show it to Blackwell first.You were contacted by IRS on this? No.Only people criminal investigators? Don't know.Can you point them out? Yes. Witness points out IRS agent Sauer.Thomas says Kwame paid you personally for latter lessons? Yes.Why do corporations want to give yoga lessons? Witness says to improve health of employees and give them greater peace of mind in stressful situations.Thomas jokes "don't break out in any moves now."Thomas says none of the other defendants went to yoga lessons? No.Granader steps done.9:31AM Michael Bullotta recalls Special agent Ron Sauer.Were you one of principal investigators? Yes.What were you doing? Looking to see if any expense of Kilpatrick Civic fund benefited Kwame personally, mail fraud- looking to see if US mail service of FEDEX or UPS used to obtain something of value under false pretenses.What about wire fraud? Also investigated wire fraud, faxes from Michigan to out of state to obtain something of value under false pretenses.Bullotta asks about text messages on Civic Fund. Did you see any? YesSauer has seen exhibit TXT 18.Bullotta admits KCF 7A: dated January 23 and 24 2002. Between Kwame and Christine Beatty.11:55PM Christine Beatty: "Hey did you get my last message?" (Had texted about whether he wanted to go ahead with ads)Kwame reply: Yes yes on the ads from the Civic Fund. Go home!"Did you compile all the checks? some of the ones from the Civic Fund.KCF 40- checks made payable to New York University for $2,500. Made from the Kilpatrick Civic Fund November 21st 2001. Memo line says Diarra O. Kilpatrick- Kwame kilpatrick's sister.IRS subpoenaed records fro NYU.KCF 41- records from NYU. For the account of Diarra O. Kilpatrick for the Tisch School for the fall of 2001. Document reflected $2,500 payment by check for tuition.KCF 38- check to Tennessee State University. From the Kilpatrick Civic Fund on August 13th 2001 for $1,000. Signed by Beatty and Kwame. For Jamilla O. Evans- Kwame's cousin.IRS subpoenaed Tennessee State for records- KCF 39. Check payment entry in records on August 15th for Evans's tuition payments.Bullotta shows KCF 13A. Text message between Beatty and Kilpatrick on February 14th 2002."Can we write Bone (nickname for sister Ayanna) a check for 2000 civic." from ChristineKwame replies : "Yes"Exhibit KCF 13AA- found a check from Civic fund for Ayanna. A check dated February 14th 2002 for $1,500. Signed by Beatty and Kwame.Was there a follow up text message on February 19th 2002 showing KCF 13B? Who was it to? Sauer says it was from Ayanna Kilpatrick and I have to refresh my mory who it was to.Sauer says it was to Christine Beatty. From Ayanna to Christine.KCF 13B texts: "I paged you yesterday re transfer of the loot." from Ayanna to Christine.A check from Civic Fund to A Step Ahead. the preschool that Kwame's kids attended. Memo says 2002 Graduation week for $5,000 dated 6/6/02.KCF 31: 4 Kilpatrick Civic Fund checks to Mongo and Associates. April 20th 2004 for $25,000. signed by Beatty and Derrick Miller.2. Check dated September 30th 2005 for $8,000 to Mongo and Associates. Memo line says consultant fee.3. Dated February 10th 2008 for $6,000. Memo line says consultant.4. Last check from Civic Fund to Mongo and Associates. Dated August 14th 2008 for $30,000 Signed by April Edgar and Kandia Milton. Edgar worked in mayor's office and became a signer on the account, Beatty's sister.Bullotta shows text message from KCF 14: a text between Kwame and Beatty. Date October 24th 2002.B: "did you just miss me?"K: "Yes ma'am. I just made my reservation to Denver."K: "Denver Nov 7thB: "Is that 8:57AM. should I take the same flight."K: "yes."KCF 15- admitted over objection. October 28th 2002 exchangge between Beatty and Kwame.K: "I really like that verse too. That shit sounds good..."B: "Are you ready for the 7th.?"K: "I'm SOOO ready...... Sauer reads with emphasis.B: "She is making my reservation..."K: "Are you ready for the 7th?"B: "You can't even understand how ready...."KCF 18- check from Civic fund to Sonnenalp Resort for $1,009.40 dated November 7th 2002. Signed only by Beatty.KCF 19- photo of the resort. Located in Vail Colorado.KCF 20- documents subpoenaed from resort. The room record for Sonnenalp for Kwame Kilpatrick lists address on Leslie St, Kwame's address prior to Manoogian Mansion. Arrival November 7th and leaves November 9th 2002. Rate is $420 a night. 2 adults- lists the second adult as "Coleman E. Young."There were charges for spa treatments at resort. 2 on November 8th and then a cancellation charge for $25 on November 9th. 2 spa treatments on a Friday.Included Sonnenalp deluxe manicure ($75), pedicure ($80) and a gentlemen's facial ($125). They were at 1pm Friday November 8th 2002.KCF 17- copy calendar of November 6th to 10th 2002. Pages out of mayor's calendar. Looking at page 1. Dated Wednesday November 6th 2002. Various appointments listed.November 7th 2002 on mayor's calendar: Hold for Mayor "Gone Fishing!" is the only entry.KCF 16: Another text message exchange. Between Kwame and Beatty on November 9th 2002."Everything ok?"B: "I guess."B: "Come to ticket counter when you drop off..."B: "they are saying $407 each..."K: "...get civic Fund checks out of my bag."B: text says everything ok now.KCF 26 : check from Civic Fund to Joan Anderson Travel dated January 29th 2002 for $1,026.18.KCF 27 : documents IRS received from Joan Anderson travel. Shows travel by Bernard Kilpatrick from Detroit to New Orleans.Next is receipt showing Bobby Ferguson also going return to New Orleans on February 1st to February 5th 2002. Same flight.KCF 21: Civic Fund check payable to Lacosta Resort and Spa in California. Dated June 28th 2006 for $8,605.03.KCF 23: picture of the Lacosta resort in Carlsbad, CA.IRS got the records from Lacosta: KCF 22. Room #804 Kwame Kilpatrick and Mrs. Kilpatrick. Lists Manoogian Mansion address. Arrived August 12th and left August 19th 2006Shows check payment of more than $4,000- room charge daily is $625 a night plus taxes and other charges.One LC massage for $145 and one deep tissue for $160. August 14th 2006 date of massages. Lists room #804.KCF 24: pages from Mayor's calendar in 2006. Spa charges were on a Monday, August 14th at 1pm Kwame gets his deep tissue.Pedicure for Carlita, manicure and pedicure for Kwame also on August 14th at 2:45PM. 2 rooms paid for with that Civic Fund check. Kilpatricks stayed for 7 nights.Arrived at LaCosta on August 12th 2006.Looking at mayor's calendar. Day before check-in several different appointments on Friday February 11th 2006. Following dates, At bottom of page reads "Family Trip Do Not Schedule." The calendar says the same for following dates while family is at the resort.Judge calls for break. Kwame manages to smile and yawns before leaving courtroom.

10:42AM Sidebar at the beginning of session today was Thomas objecting to the government's submission of text messages between Kwame and Christine Beatty.

10:45AM Judge re-enters courtroom.

10:46AM Sauer takes his seat at the stand.

Another check to Joan Anderson Travel- KCF 29- from Civic Fund dated August 14th 2002 for $1089.50. Signed by Beatty and Kwame.

Subpoenaed record from travel company: Christine Beatty and Maya and Lauren Beatty, daughters. Traveled from Detroit to Los Angeles on August 15th 2002. Check paid fro that travel.

No evidence on travel expenditures from those accounts? I don't have that knowledge.

No evidence of hotel expenses, meals? I don't have any knowledge of that.

Shea ends.

10:57AM Thomas cross examines.

This case not about Beatty affair? No it's not.

Nothing illegal about having affair? No it's not.

Christine Beatty had a job? Yes she was Kwame's Chief of Staff.

As Chief of Staff could have traveled with him for business purposes? Could have.

Beatty was on Civic Fund? Yes she was. She signed checks.

Looking at document that Thomas has on overhead. Lists Beatty as Treasurer on Kilpatrick Civic Fund.

Thomas says it's a government file? Correct.

Dated June 2nd 1998, postmarked received June 9th 1998.

You determination that Beatty signed checks? She signed a large number of checks.

Almost exclusively she was signatory with other person? Correct.

We had seen checks post 2002 that had Kwame's signature? Refresh my memory.

Were you aware that Kwame was not director post mid-year 2002?

Is there any explanation why his signature would appear? You'll have to help me out.

Did you consider that he might have pre signed checks? That's a possibility.

Can you consider the fact that he might have signed large number of checks? That's a possibility.

D KCF 2- dated July 19th 2002. Thomas cross examined regarding document. Signed by William Phillips. Document lists people responsible for Civic Fund and Kwame not listed anywhere. No longer had an official title at that point.

D KCF 4- Articles that list purposes of the Civic Fund: a. to promote community activities that enhance neighborhoods as well as activities that contribute to the betterment of the the lives of youths of Detroit and surrounding activities.

Sauer says he would go back to purposes of Civic Fund on form 990. Sauer says he looked at articles of incorporation since early in the investigation.

Looking at communication between Beatty and Kwame on January 23rd 2002.

Thomas asks who initiated this contact? Beatty says Sauer.

Thomas says both Beatty and Kwame officers at Civic fund at this point? Yes.

Communication about something to do with Civic Fund? Yes.

It appears that Beatty was at work at 11:55pm? Yes.

It appears that she had a job other than having an affair with Kwame? Yes.

Looking at KCF 41- check to NYU paying for a student who is identified as Diarra Kilpatrick. Apparently this is generated to see a check of $2,500 applied to significant tuition. Correct says Sauer.

Thomas says it's your position that it was a Civic Fund check that paid that $2,500? Yes.

In your review of the articles of incorporation was there a prohibition on anyone with the same last name for the proposes of education? No.

Did you come across anything indicating of fundraising at La Costa? Not aware of any fund-raising at LaCosta Spa.

You were asked about payments including $1,208, was that on First Independence Credit Card? Yes.

Witness says it's same credit card that $282,00 in cash was paid on.

Do you have an exact recollections of what donations were made? Would it help to look at spreadsheet? Yes it would

Witness looks at it and says it refreshes memory. Gave Big Brothers $500.

What did Civic Fund give March of Dimes? Witness looks at spreadsheet. It appears to be $200 in 2003.

How much was bill for La Costa Resort on Civic Fund? $8,605.03.

11:58AM Thomas redirects.

List of payees came from document you put together? Correct.

Do you remember a check in the amount of $500 to Spain School Board? Don't remember.

Michigan Crossover team do you remember that? Don't have a specific recollection.

Pershing High School? Remember that? No.

New Providence church? Good News Bible Church? If it's on the spreadsheet.

$5,000 to Black Slate? I do remember a check to the Black Slate.

Thomas lists numerous churches.

Judge interrupts. This is not proper use. Can't use the document that way. Admit it into evidence and use it substantively.

If I can't explore what he knows and doesn't know says Thomas. Judge says that is not an appropriate use. Can't do it that way.

Thomas concedes and questioning of witness ends. Sauer is excused.

Judge calls for a 5 minute "comfort break."

12:15PM Thomas and Kwame sharing a snack during the break.

12:17PM Judge re-enters courtroom and court back in session.

Government calling a new witness. Bullotta passes a sheet to Thomas.

Calling Matt Allen. Went to Michigan State for BA. Worked for a small period of time as private investigator. To pay for college was in the Army for 14 years, Military Police Corp. Stationed at Fort Bragg. Got into broadcasting in 1998, worked for WWJ and then Fox 2 News where he worked ultimately as chief Assignment Editor. Ended in July 2006 when he went to work for Mayor Kilpatrick as press Secretary. In 2005, during primary process, helped organize primary debate and got to know people working on campaign. Had had phone conversations with Kwame when he was in state legislature. Overture made in February 2006 for a job in the mayor's office.

Mayor knew that witness was hometown guy and lived in the city of Detroit with wife and step-son. Mayor had said he really wanted his administration to be from Detroit. Started in July 10th 2006.

What did you do as press secretary? Helped facilitate info with media. Answering Freedom of Information Acts from media. Clarifying media questions.

So media would make FOIA requests? Yes.

Sometimes requests would come directly to mayor's office but all would eventually go to the law department.

In the spring of 2007 were you aware of FOIA by Steve Wilson? Yes. An investigative reporter for channel 7. He wanted city issued credit card records for the former mayor that included August of 2006.

What was Wilson looking into? He wanted to know if charges were made to a resort in California on city issued card.

The La Costa? Yes.

Witness says he went to Chief of Staff.

Did you tell mayor? Yes. What I learned from conversation that the city issued card was used to reserve room and then put charges on his personal credit card says witness.

What was your explanation going to be after talking to mayor? That the city issue credit card was not used and that mayor paid for family vacation on personal credit card.

Did mayor ever mention Civic Fund? No.

Did you talk to Wilson? I told Wilson that when I gave him documents.

Wilson asks witness several times how mayor paid for family. Witness told him that the mayor paid for it personally.

But he kept asking you? Many times yes.

At some point were you interviewed by Channel 7? Not live. Another reporter was hanging out by building and witness went outside by city county building to see her.

Bullotta plays video- witness says on video "For the family trip, the mayor paid for the family trip."

Witness says for the family portion of the trip, I told reporter that he had paid for it.

Witness says there was a TV piece later that had a fax of a check to the LaCosta Spa for $8,605.03.

Was that the first time you saw that check? Yes.

How did you feel? "Well I kind of felt like I had my pants down."

Witness says Beatty and Kwame angrily and wondered where check was from.

Witness says he called Channel 7 and he was mad that he hadn't been told everything. "For me, I wanted to get to the bottom of things." Witness felt he had done everything to be transparent and got "stung."

Witness says what was explained to him that trip was paid for by Civic Fund because mayor was there to do fund-raising.

Was this after the report? Yes it was.

Witness says mayor was there for vacation and fund-raising for Civic Fund.

Was that you had heard of fund-raising? Yes.

Witness says that the TV news station had used a fax forwarding agency to get the fax of the check. It came through his attention, that the mayor had called and requested a copy of his bill.

What were you trying to do? I was trying to get to the bottom of it. Inquiries were made at the hotel and it was determined that someone had posed as the media. Witness proposed pushing back at the media for its crappy shots. "We kept score. It was our chance to get back at media for dirty play."

Witness says so they asked for an investigation to be done on Steve Wilson. Police interviewed mayor and Wilson and Wilson did not come off well. Witness thought that it was a good opportunity to show the rest of the media.

Kwame filed police report.

Witness says that when everything came together, they decided to have a press conference "to basically pull Steve Wilson's pants down in public."

At any point did you ask for donors from California to say something?

Thomas objects.

Witness said that in brain-storming session he proposed getting donors that met with you for Civic Fund.

What did the mayor think? "He didn't like that idea."

Do you know William Phillips? Yes.

Was he at press conference? Yes to answer questions about Civic Fund.

"It was bitter-sweet because we got a dig in but it didn't make the media go away," says Allen.

During 2006-2008, was there brochure made of accomplishments of administration? Yes.

Who oversaw that? Chief of Staff, Christine Beatty.

Witness says brochure made as give away for Mayor's State of the City Address.

Government questioning ends. Thomas says he has lengthy questioning for the witness so Judge Edmunds adjourns court and says session will resume tomorrow.

Kwame definitely looked agitated during questioning. Word from the courtroom is that juror body language was very strong today. While defense examined, one juror crossed her arms over her chest and cocked her head to the side and one male juror actually smirked.

RECAP:

And the list of dubious things paid for out of the Kilpatrick Civic Fund charity continues to grow.

Items on that list revealed in testimony today included group yoga sessions at the Manoogian Mansion, contributions towards the out-of-state college tuitions of two relatives, payment to the preschool attended by Kwame Kilpatrick's twin sons and luxury hotel stays in Colorado and California.

Jurors were inundated by the government's interminable laundry of evidence. The first witness on the day, Radmilla Kest, testified that her Center for Yoga received checks totaling almost $4,000 from the Kilpatrick Civic Fund for yoga sessions provided to the former mayor in late 2002 and early 2003. Brian Granader, a yoga instructor, recounted to the court how he would go to Cobo Hall and Manoogian Mansion and teach yoga to a group of 5 to 8 people which included the former mayor.

IRS Special Agent Ron Sauer was called back yet again to divulge further questionable expenses out of the Kilpatrick Civic Fund.

Two out-of-state college payments were made in 2001. The first was for $2,500 to New York University for part of the tuition of Diarra Kilpatrick, Kwame's sister, while a second check for $1,000 was made out to Tennessee State University on behalf of Jamilla Evans, his cousin.

The court also heard about a check for $1,500 issued to Ayanna "Bone" Kilpatrick on February 14th, 2002 and another for $5,000 that was given to A Step Ahead preschool which Mr. Kilpatrick's twin sons had attended. Both checks were also from the charity.

But the really juicy testimony had to do with spa vacations at luxury resorts in Colorado and California. In November 2002, Kilpatrick and then mistress Christine Beatty stayed at the $420 a night Sonnenalp Resort in Vail, Colorado. While there, the couple indulged in spa treatments including a manicure, pedicure and a gentleman's facial. A check from the Civic Fund was issued to the hotel to the tune of $1,009.40.

In August 2006, the Kilpatrick clan traveled to Carlsbad, California to spend a week at the La Costa Resort & Spa. The Kilpatricks stayed in two rooms at the $625 a night resort and accrued an assortment of costs which included expensive massages and pedicures. A check for $8,605.03 from the Kilpatrick Civic Fund was issued for that particular stay.

The defense faced a tough battle today and Kwame's defense lawyer Jim Thomas acquitted himself well. Under cross examination, Thomas pointed out that Beatty had signed many if not most of the checks that had been introduced from the Civic Fund.

"Did you consider that he (Kwame) might have pre-signed checks?" Thomas asked Sauer. "It's a possibility," conceded the IRS agent.

Thomas also referred the witness back to the Civic Fund's articles of incorporation which stated that the charity could "receive and administer assets for charitable, educational and religious purposes."

In obvious reference to the college tuition payments, Thomas asked "Would you not consider scholarships a charitable donation?" Yes replied Sauer.

In terms of the payment made in June 2002 to A Step Ahead, Thomas said that it couldn't have peen a personal payment for the Kilpatricks as the boys had graduated the preschool in 2001.

As for the luxury hotels, Thomas argued the government hadn't proved that the former mayor didn't have legitimate business and fund-raising reasons related to the Civic fund that warranted the stays.

The last witness on the day was Matt Allen, Kilpatrick's press secretary between 2006 and 2008. Allen recounted how "I got caught with my pants down" when a media investigation revealed that the La Costa stay had been paid in part with a city-issued credit card. In the storm that ensued, city staffers brainstormed ways to diffuse the controversy. Allen proposed bringing forward some of the California donors to the Civic Fund that Kilpatrick had met with.

"What did the mayor think of that?" asked U.S. Attorney Michael Bullotta.

"He didn't like that idea," responded Allen.

Defense will begin its cross examination of Allen tomorrow at 9AM.

About the author:

Alexandra Harland is a Princeton undergrad and has a masters degree in International affairs with Columbia. A Montreal native, she worked with the Daily Telegraph newspaper for a few years before transitioning to TV, when she worked at ABC News with Peter Jennings. Alexandra has also worked in newsrooms in both Detroit and Boston.

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